Using AI to assess and understand your loan portfolio ahead of student loan repayments

The debt-limit deal struck by the White House and congressional Republicans says the pause on student loan payments will expire no later than Aug. 30. This decision may have had significant consequences for credit unions and dealers five or ten years ago. But with the rise in AI-driven tools, there are more ways to identify a person’s ability to pay or purchase even when their debt obligations change from one week to the next.

It’s a significant issue and something that credit unions should be getting in front of now, doing what they can to understand their exposure. This is not just in terms of which members have student loans and the size of their balances, although those are key points to factor, but also taking a step back and looking at those members holistically. For example, of those members with student loans, who is in better shape to handle these additional and/or new payments, and who may be struggling now that those payments will come due?

Additionally, there are a number of student loan holders who started school and originated auto loans during the pandemic and have never made a payment. This highlights the importance of understanding not only which students have loans but also where they are in the payment cycle of that loan.


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